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tv   Fast Money  CNBC  August 23, 2012 5:00pm-6:00pm EDT

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1402 on the standard and poor's. i hope you'll follow me on twitter. have a fantastic night. see you tomorrow. stay with cnbc because fa"fast money" begins now. i think markets have the idea of some gigantic action. i'm not sure the data warrants that. political rhetoric heating up. >> if president obama gets his wish, we'll go back into a recession. they try to measure the world against this massive tax increase they want to occur, which we think will trigger a recession, which hurts revenues. and stocks pay the price, retreating from four-year highs this week. it seems some companies may have to get creative to move their stocks now. >> maybe the most important news of the day, for the first time in 25 years, microsoft has unveiled a new logo. that is their new logo. microsoft, we're four squares. >> fresh from the trading floor, this is "fast money."
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live from the nasdaq market site in new york city's times square, i'm melissa lee. stocks dropped today. cold water thrown on qe-3. still, this afternoon, others saying qe-3 is a done deal. joe? >> i think last night most people probably got it wrong. i agree. what you saw in the minutes really was stale. they did not have, on july 31st and august 1st, the benefit of looking forward to the august 3rd labor report. you saw 172,000 private sector jobs, well ahead of analysts' expectations. you also had an s&p here that has risen to 1415. this is much different than 2010. you had an sep decelerating. you had private sector jobs not going anywhere. i think the trade off of all this is when you look at the performance on oil, the
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performance of steel and coal, you don't go with that reflags their trade. that's a technical trade. i take the other side of those that say it's because of qe-3. >> karen. >> a couple things about qe-3. i don't know if we're going to have it, if we're not. i don't know that it matters, really. the market's response to each big policy move is less and less each time. so i don't even know how much of a difference it makes if we do. i think much more critical to the u.s. economy is what's happening in europe and what's happening in asia. we don't have enough clarity yet. europe, the next four weeks, we'll have a lot more info. >> does it matter, and would you go with bill or james? >> i'm going with bill gross. i think the feds very, very thoughtful. they have a longer term timewise. they make warren buffett look like a day trader. you still got a very high unemployment rate. their language was so emphatic that there will be an easing that it's going to happen.
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however, i'm with karen. i just don't think it matters. i don't know what they do. i think we're in the kind of market where the thought of an easing, whether it's here or in europe, does more than they think. >> so what was today's decline about? >> i think it's a continuation of what started a few days ago. people looking at the rally in cyclicals. they're starting to realize, all right, this was a reversion trade. as to qe-3, i think we're already up to qe-5. ltor is qe-3. the extension of operation twist is qe-4. this is an ongoing thing. i don't see why that should really matter. if we're going to do 2% growth, let's focus on what's going to work in that environment in stock land and certainly it's not going to be metals, miners, and all the things that got sold off today. >> so what should we be focusing on today? we're off the multiyear highs we were on. do you start taking profits in some of the areas?
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>> i call it a shake the trees type of correction. we talked about this the other day where maybe the market tests 1391, which was the previous high in the s&p 500. i don't think you go at lower dollar type trades. i agree with everyone here. monetary easing is needed from the ecb. you're getting a selloff in technology. that's the first place i would look to strike. i'd be acquiring technology names and look at consumer discretionary next. >> mike, i want to see where you're seeing any buying, if at all, if there are sectors or areas in the market. >> well, i definitely think there has been some pretty good put buying. most of that has been taking place in index, which is sort of indicative of portfolio insurance. we've talked about this before, but when volatility came in as sharply as it did, we saw a lot of constitutional buying of put spreads in etf and several other places. i think people were just trying
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to take advantage of the fact you get a lot of leverage on those hedges to the down side when options premiums were cheap. we've been seeing it in a couple single names as well. we'll talk more about the airlines. we saw a lot of put buying there. i don't know if that's bearish buying because the stocks have already come in fairly sharply. those may be hedges. >> if you throughout are with this desk and skeptical of this market, you may be loorking for new short ideas. we have just the guest for you. brad is a co-manager of the active bear etf fund that shorts individual stocks. with the markets recently touching 4 1/2 year highs, did you increase your short positions, or do you identify new short opportunities? >> so we do a little of both. we're a bit of a market timer, and we're forensic accountants on our stock selection. in the fall, we had moved quite low, down to 80% invested, which is, you know, we're suggesting a rally would be occurring. we went fully invested in the winter. we dropped back to 90% in june. now we're back up to fully
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invested. >> i want to talk about some of the stocks in particular. we got the results from bhp yesterday, which didn't indicate that iron ore prices could be stabilizing at this point, but demand is still weak out there. >> it's very weak. in their situation, they really are roll up. they've paid a very high acquisition cost for their companies they've acquired. i think the stock's going to $12. >> i'm with you. i'm sure jim has gotten shorted. ore broke $100. that's going a lot lower on the business model. i think you may be aggressive at 12 in terms of the downside. >> we don't think any of our companies we short are actually going to go bankrupt. >> no. >> they could. >> they've got issues. >> what's the most dangerous as a stock picker on the short side? what's the absolute most dangerous thing that can happen? i know you're not totally concentrated on one or two
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positions, but how could a short blow up from your standpoint as a fund manager, and what are the things you look for before you get in that might give you caution? >> so we're forensic accounta s accountants. we're looking through the s&p 1500 to look for the names we would typically want to short. we're very technically driven and oriented as well. so if something starts gaining too much momentum, we'll start cutting back that position. for instance, we were short in the spring. stock continued to be too strong on corrections. we're out of there. simple as that. >> even if the thesis holds true on the short side, you will pay attention to market behavior, and you'll allow yourself to not ride something all the way up. >> oh, yeah. absolutely. we're not going to just sit and get beat to death. >> okay. >> so when you look -- using your forensic accountant hat, do you start with a cash flow statement? where do you start as a place that's most important to give you a heads up? >> sure. my partner worked for david
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tice. he's very revenue oriented. earnings can be manipulated. bad business models can morph into something different. revenues are very isolated, and you can't hide them. >> can you use a specific holding and walk us through how that gave you the heads up for taking that position? >> yeah, we could walk through green mountain. when we started the fund, the momentum was much too strong to get a full position on. my partner saw lots of different things that he, you know, was drawing red flags, including some of the acquisitions they had created, purchased. as the company topped out around 100, you could go back into the chart and see where some of the distributions started to occur within the stock. then they bought a company called deitrich coffee, which was the downfall where it started unraveling. we still feel like it's going
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much lower. >> let me ask you about coach. have you planned on trimming that position going into the last quarter of the year? a lot of analysts are pointing to this new product rollout, the legacy collection. also, it's just a seasonally stronger period of time for a name like coach. >> so we were short coach. we were short end of the earnings. we've actually added on the bounce. we think it's trading at much too high of a premium relative to its peers. we actually -- the asian markets were where we were seeing the weakness. north america was a total surprise to us. so we're even more bearish now that that information came out. >> all right, brad. we're going to leave it there. thanks for coming out. >> thank you. >> i pose this question to you guys. would you short this market at this point? josh. >> i don't think i would short the market. i think if you're looking to hedge positions, there's something to be said for an invert ctf or even trying out brad's product.
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broadly, very a-symmetric in terms of risk. any minute something can happen. shorting the market on that basis is not a game for me. >> i pretty much covered all my shorts. i'd like to re-enter steel. i covered it. i actually went long. when the market started to move, i went long. however, at this point, i'm positive the market. it's not unusual to have a market move this much to get to a psychological level like a 4 1/2 year high and then fail. so i'm looking to get much longer. i think what europe comes out with, whether it works or not, is going to be phenomenal and really drive the market higher. >> short idea, karen. >> you know, i don't really want to short into this. i don't know if go higher or not. i think with volatility index here, it's cheaper to buy protection than it's been for a long time. that's the way we're going to do it. maybe trim a little, take some cummings engine off. i feel like i can't trade around. it's too hard to trade around every day. >> for me, it's very difficult
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to short. >> for individual names. >> from a tactical standpoint, i'll use s&p futures to blanket my portfolio overall, but i think when you are going to short on any type of lift in the marketplace, you want to look where the secular story has changed. i think there's three names out there right now where the secular story has changed. number one would be staples. i still think you're going to see a $10 print. number two would be wendy's. they have totally missed the growth overseas in the emerging markets. i think lastly, when you look at advanced microdevices, amd, they are just getting obliterated by intel, market shares being stolen. any rebound in those names -- >> but those are investment shorts as opposed to, hey, i think this is a little too expensi expensive. >> in that case, i'm just going to use something on a broad basis. >> jcpenney probably the best short. that's compelling on every single level.
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if you can stand some volatility, when ron johnson comes out and gives his new age bs, great, but that's going to ten. >> me llissa, real quick. you could make the argument after earnings from dell and hewlett pack associate's degr hewlett packard. >> you just know these companies are shrinking. it's pretty apparent. >> let's hit some after hours action. check out of crm, salesforce.com. better than expected. if we can pull up the after hours chart of crm. urk s you can see how the stock is trading. the ceo will join cramer on mad money. >> two cents light on the guidance. they've made some acquisitions here with buddy media. you'll want to find out if the acquisitions will take a pause here. i think the ultimate question is, you've seen the larger placer. oracle, sap.
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say, okay, i need to be in the cloud space. they've gone out, made acquisitions. is that impacting market share here for sales force? >> all right. next on "fast," when karen speaks -- >> they have 29 best -- they lease 29 stores to best buy. >> ceos listen, and now the ceo retail property manager wants to explain why his company won't be a death of the big box. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers
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welcome back to fast it's. it's a good time to buy european stocks. josh brown has been looking at a large cap multinationals
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headquartered in europe but getting their sales elsewhere. >> i think there's some new chatter on the street. you've seen a lot of institutional investors. they've been slowly accumulating europe but almost embarrassed to say it. at this point it's become apparent that not every european company has a ton of exposure to the european banking system. when you look at the euro stock's 50, you're talking about basically price to book of one, a p.e. of ten you have companies there that are global brands. these companies do more than 50% of their revenue overseas. it's the same as u.s. companies that do a majority of their revenue overseas. even though they're domiciled in the u.s., it doesn't mean their business has to suffer. the problem has been these companies, again, they're in the euro stock's 50. they're in these indexes. these indexes are 20% banks, so they get tarnished, but that's why they get cheap. i'm seeing a lot of people put
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that trade on. >> what specifically -- what instrument are they using? >> if you're on a institution, you can pick stocks on local exchanges. what you can do is hedge out the euro risk. if you're an individual investor, one thing that i would recommend taking a look at is a new product coming from wisdom tree. it's an existing fund they're repurposing for this trade. they're going to go long, multignmult multinats and hedge out the euro versus u.s. dollar. you almost get two benefits in one. that happens on august 29th. the ticker is hedg. i would do some homework on that. >> would you have any inclination to be in big, multinationals that do a lot of business in europe? the evaluation might be -- things are bad. >> that's probably the next level trade. i would be scared to death to put that on ahead of what's coming in the next month. don't forget, the big dutch
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elections. you've got the esm vote in germany. whether or not it's even legal to do the stability mechanisms. that's a trade that probably works at some point in the future. but i would be -- >> let's go real surgical on it. when you look at the performance quarter, the date of the dax, it's up 7.5%. only the brazilian has done better in terms of the g-20. you look at multicaps there. i think folks would want to take a look at this. s&p continues to work well. i heard josh mention dimeler. their earnings have been resilient in the face of head winds. >> look, take a really broad stance. understand the european index is down literally '08, '09, 2010, 22% last year. at a certain point, things get a little bit overdone regardless
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of how bad the macro picture is. these stocks are selling for way too cheap, and they're going to find strong hands and work. >> let's move on here. debate over the death of big box stores has intensified recently as best buy and others say the way they can earn growth is to close stores. >> when i look at, like, a ddr, they have 29 best buy -- they lease 29 stores to best buy. as an overall part of their portfolio, even if best buy pulls out, they have so many other -- they have wal-mart, tjx. >> now, karen's trade hasn't necessarily played out to her benefit yet, but it did grab the attention of ddr ceo who joins us onset. daniel, nice to have you with us. walk us through because the assumption had been that when you hear about a big chain closing stores, it's necessarily
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negative for your business. >> i understand the assumption, and i understand the trade and thought process, but it's not reality on where we sit today. right now we are in a position where demand is outstripping supply at record levels. we have nothing new being built in our business. demand and the need to grow for retailers has been extreme. as a result, you look at a tenant like best buy, where we do have 29 of them, and they happen to be in 29 of our very, very best assets. they average about 20 to 30% below market rents in each one of those assets. we have a waiting list of tenants interested in taking that space. our 20,000-square foot boxes are 97% leased in our portfolio. if we can get more back, it would be beneficial. >> so it's sort of a blessing in disguise for you that best buy would choose to close a store because then you can raise the rent on the new tenant you bring in, who are waiting on a lest to get in. >> correct. we would love the opportunity to mark that space to market. >> so let me ask you.
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this environment, one of the things i think that made the retrade not work is interest rates being as low as they are. people chasing yield. for your business, inflation, is that a good thing, a bad thing, do you want a little bit of it? >> we would like a little more inflation, quite frankly. if you look in categories, in particular, ready to wear, for example, we have been in deflation for an extended period of time. that's why comp store sales have been as relatively anemic as they have been or those stores that are gaining on a comp store basis are putting in a heroic performance because we are in a deflation their environment. no one is buying anything at full price today. everyone is looking for a bargain. the retailers know that. >> you're probably the perfect person to ask this. every time we hear about a retailer that's failing whether it's toys r us, sears, their real estate is worth so much money. it has never worked out.
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do you think it's wrong it will work out for those retailers? >> i don't think it will work out for those retailers. the reason is, if you look at the real estate as it sits today, it's very easy to say there is value in the real estate, except each one of those boxes have operative documents that have certain controls over what you can do with that real estate and who you need consent from to do that with the real estate. that devalues each step of the way. so when you go to other retailers and ask for their consent to split up a box or go to a landlord and ask him for consent to split up a box or change of use, that does, in fact, devalue or gives the opportunity to devalue the asset. i think that's often overlooked in the discussion about the value of retail real estate from a retailer's perspective. >> when you're looking at your tenants, you probably have a good sense, and you might have some participation, i don't know, who's doing well and who's not doing well. >> well, folks that are doing
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the best in our portfolio are people that are grabbing the market share. the great thing about our business is we don't have to guess, right. most tenants report sales. the consumer votes every day with his or her dollar. if you look at the tjx company, bed, bath, and beyond, target, wal-mart, ross stores, pet smart, you look at the people that offer branded goods at a value. all of them offer convenience. they're conveniently located. they're for product at a great value. again, no one is looking to pay full price. everyone is looking for that bargain. we see the results every month or every quarter. the people that are struggling are obviously struggling for a reason. >> i want to try and better understand what your lease rates are. is there a sweet spot in terms of size of box where you can get the most per square foot? i mean, is a big box where you have a giant space really the best way to divide up your space, or is it actually great if you can divide up that big box into smaller stores and get a higher rate per square foot?
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>> that's a great question. it really depends on the location and depends on the demand. you know, the way to drive rent is to have competition for space. so if you have multiple tenants looking for space, you can drive rent. even in a recession you can drive rent if you have competition for space. if you have that competition for space, dividing up the box or leaving it intact will determine the ultimate value. that's why the retail real estate business is so platform driven and is so operationally intensive. you have to understand what's going on in that market to decide how to best value that real estate. >> what are the strongest retailers out there based on your communications with them? who's expanding? who's showing they have the demand? >> target is doing a great job. wal-mart is doing a great job. bed, bath, and beyond is doing a great job. tj, costco, ross, dick's sporting goods. >> in terms of trends, if a lease comes up today, would you
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typically fill that space at a higher lease rate? >> yes, we've had nine straight quarters of lease rate increases in our portfolio. our retention rate is in the high 90s. so we're going very, very well. we're keeping tenants and drive it in the 5 to 8% growth rate. >> dan, thanks so much for coming by. hope you'll come by again. >> thank you very having me. >> karen r you rethinking this trade? >> i've got to. that was interesting. it hasn't worked. >> are you bullish on these retail rates? >> i am. i like talbot centers. the only issue i have is that rates are very low. there's not enough capacity. there's so much demand. when does more capacity come on the market? >> hospital reads. >> i think that's one place there's definitely not in need of building.
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if obamacar survives novembers, which i'm not sure it will, hospital reads should benefit. >> data firms. >> perfect. >> got it. next on "fast," saddle up. we're about to go gangnam. and want to see our viewers spends denim into spam? at optiol about options trading. we create easy-to-use, powerful trading tools for all. look at these streaming charts! they're totally customizable and they let you visualize what might happen next. that's genius! we knew you needed a platform that could really help you elevate your trading. so we built it. chances of making this? it's a lot easier to find out if a trade is potentially profitable. just use our trade & probability calculator and there it is. for all the reasons you trade options - from income to risk management to diversification - you'll have the tools to get it done.
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time for pops and drops and rivers you might have missed. big lots down 21%. >> that was a big-sized drop for big lot. it's not crazy expensive here, but the guidance down was pretty disappointing. >> alpha natural down 7%. >> no reason to own it. >> safeway a drop as well, down 4%. >> if you look at what's working, it's whole foods. it's not the old traditional supermarkets. >> ggp up 10%. >> yes, bill ackman wants them
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to sell. they almost sold to brookfield. >> and first solar up 3%. >> they're interested not just in selling the solar modules but capturing maybe as much as 20% of the back-up market in india. this seems like a speculative bet to me. i probably would fade this. >> we have a pop for mankind. here's a story you can sink your teeth into. a man in nepal was bitten by a snake while working in a rice patty. instead of seeking medical attention, the wounded farmer chased down the cobra and bit it back, killing the serpent and balancing the scales of justice. the man is expected to make a full recovery. how did he kill it by biting it? >> is that a delicacy over there? >> probably not. drop for hewlett packard. down 8%. karen. >> it seems like there's no bottom in sight. it was all earnings last night, obviously. not good. the pc unwind continues to
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happen. i thought it would be better for apple today than it was. hp, i can't play anymore ever in hp. >> ever. wow. >> well, you know, maybe not ever. when they turn it around. >> cirrus up 7%. >> in the mid-30. i've gotten cirrus wrong over the last couple days. what happened today? barclays points out the content contribution that cirrus has into the iphone. iphone 4s, $1.25. further upside. >> pop, hormel up 1%. >> these are two food stocks i'm getting for the pop and the drop. maybe i need to lose weight. i prefer some of the more healthy names like cane. >> a drp for guess, down 23%. >> yes, this is actually a case
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of really bad communication between management and shareholders. they totally blew the quarter. they blamed southern europe primarily and slowing sales in north america. it's not as though they didn't have this information that there was slowness weeks ago. i'm surprised at the extent of this miss. >> drop for baidu. >> they're losing anywhere from 4 to 8% of their market share to a new search engine which was only out about a week. that's a lot of market share to be losing in a short amount of time. big negative for this stock. >> a pop for gangnam, i'm told. that's what it's called. a korean pop artist named psy. >> it's sparked a craze. i guess it doesn't matter what it's called because it's amazing. in the video for this breakout song, this artist introduces a move which pair disriding an
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invisible horse. more than 50 million views on youtube. singer nelly furtado performed the dance at a concert. >> i think karen has it on her ipod. >> i do. i started that move. >> i'm going to the concert, if anybody wants to. >> next on "fast," can the economy survive the one-two punch of the fiscal threat? and we find out what's at sfak at j.p.morgan. tonight, watch larry kudlow's one on one with vice presidential candidate paul ryan. that's a cnbc exclusive tonight apt 7:00. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen.
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welcome back to "fast." we're live at the nasdaq market site in times square. could we see enough economic strength for the feds to hold off on a third round of qe-3? michael, where do you stand on that? did the fomc minutes factor in
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at all? >> yeah, i think they tilted up the odds a little of seeing qe at the september meeting. i think another message we got from that is it's very likely they extend the low rate gien guidance, which is now late 2014. prior to the minutes, as i said, we had been looking for qe at the september meeting. i think it increases the odds a little bit, but it's far from a slam dunk. still a lot of data between now and the next meeting. a strong payroll report in the next two weeks could tilt the odds against qe. we think in all likelihood, they said between now and the next meeting we need to see sustainable, very strong growth. i don't think we've seen that quite yet. we think the odds are still probably tilted in favor of seeing more asset purchases at the september meeting. >> michael, most investors right now are more focused on the fiscal cliff than the potential for qe-3. the market itself is a forward-looking mechanism. if we look forward six to nine
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months, we have an s&p at a four-year high. why the lack of concern for the potential of what could be with the fiscal cliff? do we suspect that there will be this grand forced comcompromise? >> i believe the view of most economists is that at the last minute we probably will get some compromise to avert most of the fiscal cliff. when you think about the risks around that, the positive risk is we have to compromise before then, before the election. that's a low probability. i think the negative risk is we actually get no compromise or compromise after the january 1st educati expiration of those measures. i think that's the bigger risk now. bad or worse are the two most likely outcomes. we do think there will be a compromise. even if there is a compromise, we're probably going to get a little more austerity next year. we often talk about the bush tax cuts as being the big part of the fiscal cliff, which it is, but even if there's a compromise
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on that, we're unlikely to extends the payroll tax holiday, and probably will see spending cuts from the budget control act. you know, i think even in a good scenario, we're probably going to see fiscal tightening earlier next year. >> michael, we're going to leave it there. thank you for joining us. joe? >> i disagree with what michael said in terms of the outcome being bad or worse. the market is trading at a four-year high. it's looking forward to something. i do believe that it sees some form of force compromise or collective compromise when you look out to what the resolution is going to be with the fiscal cliff. >> i agree. we go into the precipice each time. each time, bang, we've got an deal. it's going to happen again. >> it's what happens just prior to the deal. before, when we had the debt ceiling debate, it was very nasty. we had a lot of ceos come on saying they were withholding plans or waiting to see what happened. that nastiness influenced their decisions. >> i come to this from the standpoint of wealth management.
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some of the things my clients are most concerned about, obviously their tax rate, but then dividend taxation, capital gain, and for certain if we get a whiff of what we got last summer where it looked like nothing might happen, there's going to be selling in the market. there's no way around it. four-year highs are nice, but you know as well as i do how quickly we could get far away from that four-year high if people think this is going to be another august, september, october of 2011. >> right. all right. let's move on here. it was another big day here for gold and silver. both metals continuing their recent runs. here to break it down is jeff killberg. let's start off with gold. technically, it's a good advance. gold did cross and stay above its moving average. >> absolutely, melissa. we saw this big move. ben bernanke was initially the catalyst. the flash pmi put a spark into the precious metals. this is the highest close we've
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seen in gold since april. right now shorts are on the running gold. on the chart, technically, it looks like 1725 is the next stop. >> and silver up 8% over the past week. you see that also continuing? >> sensational move. the moving average there is 2969. we sliced right through that. silver has been grabbed nearly 10%. a big high-ho to all the silver traders. right now this is the place to be. also palladium as well as platinum. across the board we're seeing them grab this gold market. important to look at, they also grabbed treasuries today. imminent central bank measures. it's coming. >> are you seeing concern around the platinum trade? most of that rise in platinum was on the backs of violence at mines in south africa. >> certainly. that was the initial catalyst. last night that flash pmi really
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alluded to the fact we're going to see some serious action. but ben bernanke, yesterday the insinuation of additional measures. really caught people off guard. we broke out of this channel from 1575 to 1642. although we've had seven days of gains in the gold market, i want to use that resistance of 1642 now as a very much support in that market as we go higher and higher on additional measures. >> all right. good to see you, jeff. >> i put ugl yesterday, which is the gold etf. the reason i bought is because when the fed came out and said they may essentially inflate again, i thought that was going to drive it higher. i like the way it rested. the news of the china, india backing off buying was out. you can't value gold. it's an emotional trade. i thought with europe having to inflate out of their economic woes, that's going to go higher. i'll probably be there two or three more days, maybe. >> i would categorize the move in metals as waking the sleeping
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giant. 140,000 contracts were done today in spot gold. last week we did somewhere around 70,000. at one point today, spot gold had done more contracts than spot oil, which is incredibly rare. this is a technical move. i wouldn't fight it. i wouldn't try and be cute and be short here. this is folks just paying attention back to something that hasn't been working and hasn't worked in a while. >> next on "fast," the next big thing in dating. you may be surprised at what it is. "fast money" looks at the big business of playing cupid, next. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity.
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visit us online to learn what makes our bank so different. coming up next hour on "mad money" a trifecta of ceo exclusives. sprint, a stock that hit a new all-time high today. big show coming up top of the hour. don't miss it. options action here. airline stocks took a beating today. did the options traders play it the same way? mike noticed some action in delta in particular. mike. >> yeah, actually, i noticed it in a couple airlines, but delta was certainly the earliest and most pronounced. we saw a big block of december
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puts traded early. they continued to be bid for for the balance of the day. by the end of the day, over 16,000 traded at just about 49 cents. obviously a bearish bet there. we found puts for united as well, which is interesting. i asked one of hour bond traders what he made of it and tro to try to find out whether the bonds were selling off. we saw a bid there. as i was taking a look at this, i was thinking what we might have is some guys who are on the fixed income side, possibly trading the eefcs, buying those and making sure they're hedged. >> all right. catch more options action tomorrow and every friday at 5:00. follow the show on twitter to get constant trade updates. all right. got a question for you. looking for love? one company is banking on an old-school approach to dating. what makes grouper unique is its
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focus on group dates. joining us is michael waxman, the founder and ceo of grouper. he tells us why he thinks this could be the next big thing. thanks for coming by. how does this work, and how do you make money? >> sure. we set up groups between groups of friends, three guys, three girls. each person prepays for the first round of drinks. we establish partnerships with local bars and restaurants who gives us discounts. we give everyone a time and place to meet. the rest is up to them. >> in terms of the money you collect, it's a cut of the drinks. >> something like that, yeah. >> what is it specifically? >> it's just a really simple business model. it's a fee per grouper. yeah, it's been going pretty well. >> so let me ask you. where are these people coming together? what are the common attributes you're using to match them up? are they facebook friends of friends of friends?
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that kind of thing? >> we use people's facebook profiles and just a few stated preferences. we're not a dating site. you don't fill out a long profile. we're just trying to improve on the experience of going to a bar.gender ratios are right, three on three, and you have some things in common, you're with your friends. the first drink's already paid for, so if you don't hit it off, you can just walk away. we're trying to build a better bar experience versus trying to build a better dating site. >> what's the age group using it the most? >> he's very interested in this apparently. >> i'm signing on as soon as i leave. >> mostly people in their 20s right now. we found as you get older, people tend to have fewer singer friends. it's mostly 20s and 30s. >> karen. >> you got three on three. let's say two of the girls like the same guy. >> that just rolled off your tongue, karen. >> well, i'm just wondering, you
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know, -- >> we found that because it's two groups of friends, you know, existing friends are pretty good at sorting that stuff out. so we expeerrimented earlil earh six strangers and found it was a little too confusing and the guys would fight over each other. it's two groups of friends. they kind of know who gets the girl if there's an argument or who likes brunettes or whatever. it works out. >> let me ask you a question then. how are you going to get anywhere in terms of really evolving the business if you don't find out what the end result of all these meetings are? >> what's your success rate? >> people measure success differently. >> that's true. >> this is breaking down. >> you know, i'm actually dating a girl i met on a grouper. we'd call that a success. >> testimonial. >> exactly. we hear all sorts of fun things. people join each other's coed volleyball teams or they go to a
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concert together or, you know, maybe they just go on a few dates. >> and if they like each other, you get some sort of consideration there? >> we don't. we just want to make the world a little bit of a better place. we're fine with that. in fact, though, about 90% of groups actually give us feedback. they're a little shy about some of the more intimate details. we have a generally pretty good sense of how the match was and how the night was. >> if you do get married, let me know how it goes, if it was a success or not. >> fair enough. >> michael, thanks for coming by. >> thank you, guys. >> founder of grouper. fascinating. >> can he get us dates? >> you're married. you're all married. >> happily married. >> you are all married. >> oh, to join somebody else's volleyball league. whatever you want to call it, josh. our trade of the day just moments away. stick around to find out what it is. [ male announcer ] the markets keep moving.
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welcome back to "fast money." we posed a question to all of you. what is the best stock to short? interestingly enough, it wasn't
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the heavily shorted names like netflix that got the responses. let's get you a couple of the biggest tweets. cr says, i'm shorting linkedin, the social networking site has the same mobile issues as facebook with advertising. so what's the best stock to short? please name a winner so we can give a prize. >> a prize? i didn't know that. >> last time you said prize, there was none. >> i lied. joe? >> i don't like the analogy between linkedin and facebook on the mobile. no way. i wouldn't short linkedin. >> all right. we'll be right back. stay tuned. tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen.
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